RICHMOND, Va.–(BUSINESS WIRE)–Owens & Minor, Inc. (NYSE-OMI) today reported financial results for the second quarter ended June 30, 2022, as summarized in the table below.
“I am very pleased with our performance in the second quarter, where the strength of our business model and the O&M business system helped us in the face of external conditions that continued to deteriorate over the quarter,” said Edward A. Pesicka, President and Chief Executive Officer.
“Our Patient Direct segment again executed very well and continues to grow as a percentage of total company profitability, and quarterly results were driven by the consistent strength in our Byram business that once again saw growth outpace the market. Apria also delivered a strong quarter and integration synergies are on track. We are strategically positioned very well to continue capitalizing on shifting preferences toward the home. In the Products & Healthcare Services segment, our differentiated, vertically integrated business model has enabled us to provide industry leading customer service levels as we continue to achieve high quality wins,” Pesicka added.
“Looking to the balance of the year, we have considered the accelerating macroeconomic headwinds, as well as the unique labor and product availability challenges within acute care resulting in lower overall hospital volume. In recognition of these factors, we have revised our full year 2022 outlook. However, in our view, the economic landscape and industry-specific challenges will eventually improve, returning hospital procedure volumes to normalized levels. Because we have the right strategy and operating model, as well as a proven business system, I am confident in our ability to successfully manage through these challenges over time,” Pesicka concluded.
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Financial Summary(1) |
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($ in millions, except per share data) |
2Q22 |
2Q21 |
YTD 2022 |
YTD 2021 |
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Revenue |
$2,500 |
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$2,489 |
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$4,907 |
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$4,816 |
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Operating income, GAAP |
$75.1 |
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$96.9 |
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$136.1 |
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$243.6 |
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Adj. Operating Income, Non-GAAP |
$113.6 |
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$115.5 |
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$218.5 |
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$278.2 |
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Net income, GAAP |
$28.6 |
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$65.9 |
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$67.9 |
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$135.5 |
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Adj. Net Income, Non-GAAP |
$58.3 |
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$80.1 |
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$131.0 |
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$191.5 |
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Adj. EBITDA, Non-GAAP |
$155.6 |
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$127.7 |
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$274.1 |
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$303.2 |
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Net income per common share, GAAP |
$0.37 |
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$0.87 |
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$0.89 |
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$1.80 |
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Adj. Net Income per share, Non-GAAP(2) |
$0.76 |
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$1.06 |
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$1.72 |
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$2.54 |
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(1) Reconciliations of the differences between the non-GAAP financial measures presented in this release and their most directly comparable GAAP financial measures are included in the tables below.
(2) Adjusted Net Income per share, Non-GAAP for Q2 2022 was unfavorably impacted as compared to prior year by foreign currency translation in the amount of $0.05 and $0.08 for the 2022 year-to-date period.
Q2 Results & Highlights
- Consolidated revenue of $2.5 billion
- Patient Direct revenue of $573 million, up 145%, with Byram revenue growth of 17% and Apria pro forma up 4.4%
- Products & Healthcare Services revenue of $1.9 billion, impacted by lower hospital procedure volume and the reduction of glove cost pass-through as expected
- Adjusted EBITDA of $156 million, up $28 million, with margin expansion of 110 basis to 6.2%
- Strong first full quarter contribution from Apria
- Productivity gains derived from the Owens & Minor business system
- Partially offset by headwinds created by macroeconomic and industry-specific conditions, and
- Unfavorable FX of $5 million
- Balance Sheet and Cash Flow
- Generated $90 million of cash from operations in the quarter and $170 million year-to-date
- Free cash flow (adjusted EBITDA less capital expenditures, net) of $107 million and $214 million year-to-date
- Reduced total debt by $67 million
- Business Highlights
- Received Premier Inc.’s 2022 Supplier Legacy Award in recognition of the value O&M provides to its members
- Broke ground on West Virginia center of excellence for medical supply logistics
- Hired Tammy Gomez as Executive Vice President and Chief Human Resources Officer
- Elected Rita Johnson-Mills, Terri Kline and Carissa Rollins to our Board of Directors
Financial Outlook
The Company’s outlook for 2022 is subject to the key assumptions below:
- Revenue for 2022 to be in a range of $9.8 billion to $10.1 billion, reflecting:
- Contribution in excess of $0.9 billion from Apria
- Now expect elective procedures for the full year to be below pre-pandemic levels due to the slow start experienced in the first half of 2022
- Continued expectation that PPE volumes will ease throughout the year
- Adjusted EBITDA for 2022 to be in a range of $570 million to $610 million, reflecting an increase related to Apria of approximately $180 million
- Adjusted EPS for 2022 to be in a range of $2.85 to $3.15, reflecting:
- Higher inflation and interest rates
- FX impact of $0.10, rates as of June 30, 2022
About Owens & Minor
Owens & Minor, Inc. (NYSE: OMI) is a Fortune 500 global healthcare solutions company integrating product manufacturing and delivery, home health supply, and perioperative services to support care through the hospital and into the home. Owens & Minor drives visibility, control and efficiency for patients, providers and healthcare professionals across the supply chain with proprietary technology and solutions, an extensive product portfolio and an Americas-based manufacturing footprint for personal protective equipment (PPE) and surgical products, as well as a robust portfolio of products and services for patients managing chronic and acute conditions in the home setting. Operating continuously since 1882 from its headquarters in Richmond, Va., Owens & Minor is a 140-year-old company powered by more than 20,000 global teammates. Learn more at https://www.owens-minor.com, follow @Owens_Minor on Twitter and connect on LinkedIn at www.linkedin.com/company/owens-&-minor.
